Orion seeks permission for price hike

Christchurch power company Orion has asked the Commerce Commission for permission to hike prices by 5 per cent to recover earthquake rebuild costs.

The firm wants to revamp its electricity network which was damaged in the devastating Canterbury 2010 and 2011 earthquakes and put in high voltage underground cables, overheard lines and pylons, and new substations.

But they want consumers to pay for it, with the upgrade estimated to cost households an extra $1000 over the next 10 years - or on average $8.70 a month, from April next year.

"As a result of our final calculations, the figure of $8.70 is slightly higher than the $8.50 communicated in our draft proposal last year," Orion chief executive Rob Jamieson said.

"The proposed prices provide no more than a fair return and provide the right incentives for us to continue to make sound investments in a strong, essential electricity network for the good of our community."